“It has been a long time since we enjoyed such broad-based gains. While one month does not make a trend, particularly during seasonally strong buying months, the combination of rising positive monthly index levels and improving annual returns is a good sign.”

But analysts added that investors seeking lower-priced property to either rent or flip provided an important engine for the market improvement and since most of those investors purchase their property with cash, they don't necessarily apply for mortgage loans.

However, as the amount of foreclosed and distressed property diminishes, the housing finance market overall, including for credit unions, should continue to strengthen, they said.